Below is small write up on 2 gold schemes recently announced by Indian Government, mainly to utilize gold more effectively and to curb gold imports in long run.

Gold bond scheme

Gold Monetisation scheme

the gold bond will be denominated in gold which means that on redemption, the investor will get money equivalent to the then prevailing value of the total amount of gold mentioned on the bond certificate

Gold has to be melted and this is later passed to banks against which a certificate is issued. On maturity, the customer can redeem the gold value with a small interest

Suitable mainly for gold bars

Suitable mainly for gold ornaments

The bonds, would be available both in demat and paper form


Trading of gold bonds will be permitted


Interest rate to be decided

Interest rate to be decided

Up to 500 grams worth of bonds per annum can be bought by an individual

Minimum  30 grams

Lock in of 5-7 years, however, early exit is allowed in bond trading market

Lock in of short, medium and long term categories. Periods range from 1 year to 15 years.


A Gold Savings Account will be opened by customers at any time, with KYC norms, as applicable. This account would be denominated in grams of gold.


One of the utilisation of Gold will be by lending to jewellers. A        Gold Metal Loan Account:  denominated in grams of gold, will be opened by the bank for jewelers. 


Some tax exemptions will be announced.

Some tax exemptions will be announced.


Regards, , Chartered Accountants, Mumbai


General disclaimer – above is personal views of CA Kunjan Shah and is to be relied upon after due checks at your end.